Maryland has a graduated state individual income tax, with rates ranging from 2.00 percent to 6.50 percent, plus local income taxes that can add up to 3.3 percent. Maryland has a flat 8.25 percent corporate income tax rate, a 6.00 percent state sales tax rate, and an average combined state and local sales tax rate of 6.00 percent. Maryland has a 0.92 percent effective property tax rate on owner-occupied housing value. Maryland has both an estate tax and an inheritance tax. Maryland’s gas tax is 46.21 cents per gallon, and its cigarette excise tax is $5.00 per pack of 20 cigarettes.
Maryland raises tax revenue primarily through individual income taxes (39.7 percent of total state and local tax revenue), property taxes (23.6 percent), and other taxes (19.1 percent). Maryland collects $8,139 in state and local tax collections per capita, carries $9,884 in state and local debt per capita, and has a 75 percent funded ratio of public pension plans. Maryland’s tax system ranks 46th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Maryland is no exception. Use the tabs below to compare Maryland taxes with other states and to see how Maryland raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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Explore our list of the top state tax ballot measures to watch for throughout the country.
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Our 2019 State Business Tax Climate Index compares each state on over 100 variables including corporate, individual, property, and sales taxes. How does your state rank?
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Four states have brought a lawsuit against the federal tax bill claiming that its $10,000 cap on the state-local deduction is unconstitutional. Here’s why the lawsuit has little merit.
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